Thanks for the concern, I agree that these terms are usually provided in the repayment schedule, but due to liquidity problems, company is paying lumpsum amounts, (not as per repayment schedule), for eg. installment was to be paid as Rs.2 million (being Rs.1.5 mn principal and Rs.0.5 mn markup) but company has paid Rs.1 million, and then Rs.7 million then Rs.2.5 million, all the payments are uneven, and now the bank has gone into litigation, Court has rejected the bank’s claim regarding penal interest as the same is not allowed, Supreme Court’s Decision is already available in this regard. Now what about the actual payments, will these be accounted for against principle first or against markup first?
I would be thankful, if anybody can give me reference of any SBP’s Circular or HC or SC’s Decision????